TCL ELECTRONICS (01070) announced that on January 20, 2026, the company entered into a non-binding memorandum of understanding with Sony Corporation concerning the following matters: the potential establishment of a joint venture company to take over Sony's home entertainment business. This joint venture would conduct integrated global business operations encompassing products such as televisions and home audio systems, spanning from product development and design to manufacturing, sales, logistics, and customer service. The joint venture would be 51% owned by the Group and 49% owned by Sony. Additionally, the MOU covers future licensing arrangements for patents, technology, and brands between the joint venture and Sony, as well as between the joint venture and the Group (collectively referred to as the "Potential Transaction"). According to the MOU, Sony has agreed and committed that, from the date of the MOU until March 31, 2026, it will not engage in any discussions or negotiations with any third party regarding any transaction that is similar or comparable in scope and purpose to the Potential Transaction in any material respect, except in limited circumstances where Sony's board of directors must comply with fiduciary duties under mandatory applicable laws as specified in the MOU.